Over the next 25
years, the Energy Information Administration projects that U.S. natural gas
consumption will increase by almost 5 trillion cubic feet, or more than 20
percent.But domestic natural gas
production is expected to increase by only 2 trillion cubic feet.So, that’s why we’re here today—to discuss
one way to fill the gap.

The Energy
Information Administration is an independent analytical and statistical
agency within the U.S. Department of Energy. EIA does not propose, advocate,
or speculate on changes in laws and regulations and does not speak for any
particular point of view on energy policy. Thus, our views should not be
construed as representing those of the Department or the Administration.

Assumptions are
critical to any forecast. The projections are not statements of what will
happen but of what might happen, given certain assumptions. The projections
are business-as-usual forecasts, given known technology and technological
trends, demographic trends, and current laws and regulations.

One of the key
assumptions underlying our forecast is that all current laws and regulations
remain as enacted. The potential impacts of pending or proposed legislation,
regulations, and standards and sections of existing legislation requiring
funds that have not been appropriated are not reflected in the projections.

Today, I will be
focusing on the reference case projections in the Annual Energy Outlook
2006, one of dozens of cases we publish every year. After I talk about
the national projections, I’ll talk about where in the world the LNG will
come from, and finally look at supply and demand in New England.